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Budget Manager Course

Class #5

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Budget Personas

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How to Cut Costs in Your M&O Budgets

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Under the FAMIS/CANOPY system, there are no automatically-generated monthly budget reports sent to departments.

Accounting Services sends out monthly accounting statements for each account that serve as the official accounting monthly reports to account managers.

Both the FAMIS and CANOPY systems allow instant access to budget information on line. It is important to monitor transactions to ensure that information is posted accurately. Departments are responsible for ensuring that budgets are monitored and that any negative variances are resolved timely.

The information contained in this training session will assist you in monitoring your budget information in these systems and discuss the budget tools available to you.

Overview

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From this training session you will learn: What every Account Manager should know about monitoring budgets Account Manager Responsibilities Budget Increases vs. Budget Adjustments Guidelines Position Actions-Personnel Actions Supplemental Pay HEAF Fund Transfers-DBR’s

What forms to use to change budgets Fiscal Requests Personnel Forms General Budget Forms

How to Perform Research and/or Reconciliations How to report errors or request more detailed research Financial Reporting for the University

Objectives for this class:

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After the base budget is developed, approved, loaded into the FAMIS accounting system to become the current operating budget, it cannot remain static. It will need to be changed and monitored as plans change or programs are added or deleted.

In order to allow for these changes, there are procedures for adjusting the budget and guidelines for managing the budget.

Budget ManagementMinding the Store

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Account Managers are responsible and accountable for all budgetary and fiscal matters pertaining to their respective department/college, unit or account.

In instances when a fiscal transaction directly benefits the Account Manager(e.g. travel expenses), the Account Manager’s immediate supervisor must approve such transactions.

Account Manager Responsibilities

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Account Managers are charged with being stewards of funds provided by the State and the University and other sources such as the federal government or private gifts, and ensuring they are expended to best serve the University and its mission. These responsibilities include:

Adequate planning for use of funds and determining the availability of funds prior to initiating any expenditure action (no matter the funding source);

Reviewing and ensuring all funds are expended in compliance with State and/or University policies and that they are properly documented;

Ensuring the funds are expended for the intended purpose and relate to the mission of the University; and

Monitoring expenditures to ensure they do not exceed budget authority.

Account Manager Responsibilities

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Account Managers may delegate review, approval and signature authority. The delegation of such authority does not relieve the manager’s responsibility to ensure the appropriateness of the expenditure and compliance with state and/or University Policies.

Failure of Account Managers to abide by these policies and procedures may result in revocation of fiscal authority, personal liability, and/or disciplinary action. Please refer to the full policy for expenditure guidelines and allowable and disallowed expenditures. These policies can be found online.

Budget Delegation Authority

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Procedures and guidelines are necessary for managing budgets to ensure that Federal, State, and University policies are followed. In addition, the guidelines provide assurance that the appropriate levels of management stay abreast of material changes to the budget.

Information concerning budget guidelines and procedures will be updated annually near the beginning of the fiscal year and can be located on the Budget Office website. Annual Operating Budget Development Instructions will also be posted online.

PROCEDURES AND GUIDELINES FOR BUDGET MANAGEMENT

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Approval Requirements Adjustments that add to the total University budget, outside the budget process, require approval at one of two levels. These levels of approval are necessary to determine the impact of accepting the increase within the University's state approved appropriation.

1. The Executive Vice President for Finance & Administration has authority to approve changes and/or additions up to and including $10,000.

2. The President must approve the following increasesa. Budget increases in excess of $10,000b. Alterations to full time positions

Exceptions Exceptions to this policy include the acceptance of grants or contracts by the Office of Research. The Budget Office is delegated the authority to approve these increases and make the necessary budget entries.

BUDGET INCREASES

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The term budget adjustment refers to both the process (DBR) and the form used. The University uses the Budget Adjustment Form to reallocate funds. The form can be downloaded from the Budget Office’s website.

Budget adjustments are generally processed from pool to pool or from one account within a division to another account in the same division.

BUDGET ADJUSTMENTS (reallocating funds)

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DBR Listing

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The movement of funds among personal services and other expense categories of the budget must include a clear and concise reason for the change. Approval is in the hands of the Dean or Director and Vice President.

If there is a transfer or request for use of funds that materially changes the resource allocation, the Budget Director and Executive Vice President for Finance & Administration will inform the President before acting on the request.

The resource allocations and changes to budgets for personal services must be monitored to ensure payroll and other costs are covered for all University expenditures.

Personal Services Increases/Decreases

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New positions and position actions - Requests for new positions and changes to an existing position should be proposed during the budget process.

Thorough justification is required if you feel a position should be reviewed during the year. The first step in the process is to contact Human Resources to obtain the appropriate documents to be submitted.

The cost of the action is to be provided from resources available in the budget. The President will provide University funds only under appropriate and extraordinary circumstances.

Position Actions 

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All public institutions of higher education except community colleges and the Texas A&M University System College of Dentistry receive funding for construction and other capital purposes from the Permanent University Fund (PUF) or the Higher Education Assistance Fund (HEAF). The Higher Education Fund (HEF) is a dedicated endowment designed to provide funding to the HEAF in the future.

Purchases of new and replacement equipment are an important aspect of the University's resource needs. The State established the Higher Education Assistance Fund (HEAF) to meet special equipment and capital needs. TAMU-CC currently receives $7.139 million per year to address these needs.

HEAF FUNDS

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In the fiscal year beginning September 1, 1985, and each fiscal year thereafter, there is hereby appropriated out of the first money coming into the state treasury not otherwise appropriated by the constitution $100 million to be used by eligible agencies and institutions of higher education for the purpose of

1. Acquiring land either with or without permanent improvements,2. Constructing and equipping buildings or other permanent

improvements, 3. Major repair or rehabilitation of buildings or other permanent

improvements, 4. Acquisition of capital equipment, 5. Library books and library materials, 6. Paying for acquiring, constructing, or equipping or for major

repair or rehabilitation of buildings, facilities, other permanent improvements,

7. Capital equipment used jointly for educational and general activities and for auxiliary enterprises to the extent of their use for educational and general activities.

HEAF Guidelines

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TEXAS A&M UNIVERSITY‐CORPUS CHRISTI

FY2013 HEF Allocations

Description of Allocation Division Account Manager Account #Allocation Amount

Balance     in HEF

FY 2013 HEF Appropriations 160901 7,139,067 

7,139,067 

Debt Service:

Michael & Karen O'Connor Bldg 1,374,500 

PAC 210,149 

HEF‐Refunding 1999 159,361 Wellness Center 318,250 

ECDC 191,750 

Utility Plant Expansion 102,000 

Total Debt Service‐FY2013 2,356,010 

Available for Allocations 4,783,057 

Allocations for FY2013:Provost‐Academic Affairs AA Markwood 160921 1,000,000 

Provost‐New Hires Start Up Costs AA Markwood 160945 100,000 

Research and Graduate Studies‐Start Up Costs RG Cifuentes 160946 400,000 

Library LI Shupala 160902 898,580 

IT Allocations IT Tatum 160970 750,000 

Deferred Maintenance FA Funk‐Baxter 160907 697,196 VP‐F&A FA Funk‐Baxter 160936 50,000 

VP‐Student Success & Engagement SA Albrecht 160935 50,000 

VP‐Research and Scholarly Activity RG Cifuentes 160937 50,000 

VP‐Institutional Advancement IA Hill 160938 50,000 

HEF Plant Fund Group‐Unallocated 830600 500,000 

HEF Unallocated 160901 237,281 

Total Allocations 4,783,057 

HEF Funds Available 0 

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Services such as telephones, mail charges, and photocopy charges or IDT’s are provided through central operations. The services for most of these can be estimated and encumbered for the entire fiscal year for planning and budgeting purposes.

This kind of activity needs to be monitored on a monthly basis to avoid expenses in excess of the approved budget authority. Forecasting is very important to ensure accurate budget management. Telephone charges and mail charges generally have 12 months of charges.

Central Services 

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Salary SavingsSalary Savings‐are the monies remaining from a vacant position after all payroll and termination costs have been satisfied. The types of positions that generate attrition are faculty professional, faculty administrator and classified positions. 

Some examples of how salary savings  funds are generated include: 

1. savings from positions being vacant for long periods of time, 

2. savings when a member of the faculty or staff goes on leave without pay status. 

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Salary savings are placed in the University’s contingency accounts. The funds are used primarily to support unforeseen circumstances as well as to provide funding for specific projects that require funds on a one‐time basis. Faculty salary savings is used to fund adjuncts, temporary teaching requirements, and summer school funding needs.  

Salary Savings may also be used to support emergency workload replacement or training needs at the request of the Account Manager. Emergency workload replacement is to be associated with a specific vacancy in the budget unit.

Salary Savings requests should be sent to the Budget Office and must include justification for the use of the funds tied to a specific PIN or position. The Budget Office will review the request and provide a recommendation based on an analysis of available  funding. The Budget Office will then notify the department with the outcome of the request. 

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Salary Savings

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VP Staff Salary Contingency AccountsFaculty Contingency Accounts

A University funding practice enables budget units to retain surplus salary funds accruing from hiring new classified staff at a lower than base budget figure (not salary savings or vacancy funds). 

As budget units experience position turnover surplus, the budget office will transfer the associated salary and benefits savings and reallocate via budget adjustment to the appropriate VP Salary Contingency account. 

The Salary Contingency accounts afford the VP’s in each Division the means to track a singular amount which can be reallocated in accordance with position funding decisions. Upon the transfer of surplus salary funds (hiring differences) into the contingency accounts, VP’s have the latitude to manage these funds to support compensation or hiring decisions best suited for each position action as they arise during the course of the fiscal year. The surplus salary holding account will be considered part of divisional base budgets.

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MANAGING/MONITORING BUDGETS Departments are responsible for monitoring budget activity and resolving any budget variances timely. 

FAMIS is the University’s official financial record or accounting system and any discrepancies or errors must be reported and corrected.

Errors should be reconciled, reported, and corrected with the help of the appropriate department: Travel

Purchasing

Payroll

Accounting

Budget

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What types of errors do you typicallyencounter in each of these areas?

How do you resolve them and correct them?

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How do we fix the deficit in the state account using funds available in the local or DT‐funded account?

• Transfer funds

• Transfer expenses‐use DCR

• Ask for funds thru Fiscal Request

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Budget Forms

Types of Forms used in Budgeting:

• Fiscal Request

• Budget Request (set up new account budget)

• Budget Change

• Budget Transfer (DBR)

• Personnel Change Form

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Transactions that  are more difficult to reconcile